Infosys says will pay out arbitration award to former CFO Rajiv Bansal

BENGALURU: Infosys said it would comply with the arbitration decision that awarded its former chief financial officer Rajiv Bansal over Rs 12 crore and would make the necessary payments.

In September, the company announced that Bansal had won his arguments in arbitration and that decision required the company to pay Bansal over Rs 12 crore plus interest. The Bengaluru-headquartered company had then said it would ‘legal advice for necessary actions to be undertaken in respect of the award.’

“Infosys has received legal advice and will comply with the award and make the necessary payments,” the company said in its second-quarter earnings filing with the Bombay Stock Exchange.

Bansal had dragged the company to arbitration after it halted payouts on his over Rs 17 crore severance. The Bengaluru-headquartered IT company had filed a counter claim against Bansal asking for the refund of the previously paid severance of Rs 5.2 crore and other damages.

The severance had been a flashpoint in the governance battle waged by founder NR Narayana Murthy against the company’s board last year. Murthy said the outsized severance could have the appearance of ‘hush money.’

A recent Allahabad high court judgment may, however, provide some relief with the court ruling that there shall be no tax levied in case of purchases made at duty free stores at the arrival or departure terminals.